Ströer Media AG: Ströer continues on its growth path
Nov 19, 2013 7:00 AM
Ströer Media AG / Key word(s): Quarter Results
- Ströer builds on successful first half of the year
- Consolidated revenue up 10.5% to EUR 439.3m
- 4.8% organic growth
- Operational EBITDA increases by 15.8% to EUR 67.7m
- Another clear improvement in adjusted profit or loss for the period
Operational EBITDA again improved to EUR 67.7m - a significant increase on the prior-year figure of EUR 58.5m. The operational EBITDA margin therefore climbed from 14.7% to 15.4%. The loss for the period of EUR 7.1m in the first nine months of the fiscal year was EUR 10.3m lower than the prior-year figure (loss of EUR 17.4m). This is attributable to both the positive trend in the Ströer Group's operating business and improvements resulting from the optimization of the financing structure in the prior year that was also driven by favorable interest rate trends on the capital markets.
In the traditional out-of-home media segment, Ströer invested selectively in specific growth projects in Germany and abroad in the first nine months of 2013. This led to an 11.4% reduction in the investment volume to EUR 26.6m (prior year: EUR 30.1m).
In the first nine months of 2013, the Ströer Germany segment increased its revenue by EUR 8.5m year on year to EUR 302.0m, with the regional customer business continuing its upward trend from the prior quarters. Overall, operational EBITDA improved slightly by EUR 1.8m year on year in the first nine months of 2013 to EUR 62.8m, while the operational EBITDA margin was on a par with the prior year at 20.8%.
The Ströer Turkey segment again increased its revenue in the third quarter of 2013. In the first nine months, segment revenue was up by a total of EUR 7.6m to EUR 70.5m. This consistently positive trend is mainly due to the expansion of advertising media capacity in Istanbul and the launch of new products as well as higher customer demand. The revenue growth was accompanied by an increase in the cost of sales, although this was more than offset. As a result, there were considerable year-on-year improvements in both operational EBITDA from EUR 1.4m to EUR 7.8m and the operational EBITDA margin from 2.3% to 11.1%.
The Ströer Group has been gradually entering the online advertising business since the second quarter of 2013. As this business represents an important pillar of the corporate strategy, Ströer is including it in a separate segment. The new Online segment performed in line with expectations, contributing revenue of EUR 27.8m. In addition to the revenue from adscale GmbH, 91% of which was acquired in April, and Ströer Digital Media GmbH, which has been wholly owned since June, the third quarter saw the first pro rata revenue contributions from the acquisition of the location-based advertising segment of Servtag GmbH (Ströer Mobile Media) and the Ballroom Group.
The 'Other' segment includes Ströer's Polish out-of-home activities and the western European giant poster business of the blowUP division.
For the fourth quarter of this year, we expect revenues in the out-of-home segment to be flattish due to the comparably strong fourth quarter the year before, while we expect increasing revenue contributions from the online segment.
1Excluding exchange rate effects and effects from the (de-)consolidation and discontinuation of operations
2Revenue less cost of sales
3 Earnings before interest, taxes, depreciation and amortization adjusted for exceptional items and effects from the phantom stock program which was terminated as of the IPO
4Earnings before interest and taxes adjusted for exceptional items, effects from the phantom stock program which was terminated as of the IPO, amortization of acquired advertising concessions and impairment losses on intangible assets
5 Adjusted EBIT before non-controlling interests net of the financial result adjusted for exceptional items and the normalized tax expense
6 Adjusted profit or loss for the period net of reported non-controlling interests divided by the number of shares outstanding after the IPO (42,098,238) plus the time-weighted addition of the shares from the capital increase (6,771,546) on 3 June 2013
7 Profit or loss for the period before non-controlling interests
8 Actual profit or loss for the period net of reported non-controlling interests divided by the number of shares outstanding after the IPO (42,098,238) plus the time-weighted addition of the shares from the capital increase (6,771,546) on 3 June 2013
9 Including cash paid for investments in property, plant and equipment and in intangible assets
10 Cash flows from operating activities less cash flows from investing activities
11 Financial liabilities less derivative financial instruments and cash
12Headcount (full and part-time employees)
Note: all figures are rounded
The Ströer Group commercializes more than 280,000 out-of-home advertising faces and several thousand websites. With consolidated revenue of EUR 560m for the full year 2012, Ströer Media AG is one of largest providers of out-of-home media in Europe in terms of revenue.
The Ströer Group has approximately 2,200 employees at over 70 locations.
For more information on the Company, please visit www.stroeer.de
Ströer Media AG
Manager Investor Relations
Ströer Allee 1 D-50999 Cologne, Germany
Phone: +49 (0)2236 / 96 45-356
Fax: +49 (0)2236 / 96 45-6356
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|Company:||Ströer Media AG|
|Ströer Allee 1|
|Phone:||+49 (0)2236.96 45 0|
|Fax:||+49 (0)2236.96 45 299|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart|
|End of News||DGAP News-Service|